When businesses go through a crisis resulting in abnormal (or interrupted) operations and significant economic challenges, many companies look to their compensation budgets as an obvious means of cutting costs.
The delicate balance is: How do you handle compensation during uncertain times to protect the financial health of your business but without losing valued employees?
This scenario could occur in any type of economic downturn or industry shift – really, anything that disrupts business continuity and impacts the bottom line.
Of course, a global pandemic such as COVID-19 is a prominent example of this. Depending on state and municipality,